How to Start and Succeed in the LPG (Gas) Retail Business in Kenya – 2025 Guide
Published by Sifa Media Digital Marketing
Table of Contents
- Introduction
- Why Invest in the LPG Business in Kenya?
- Legal Requirements to Start a Gas Business
- Initial Capital and Equipment Needed
- Licensing and Permits
- Finding Reliable Gas Suppliers
- Revenue, Profit Margins, and Breakeven
- How to Market Your LPG Business
- Digital Solutions for Your Gas Business
- Final Thoughts
Introduction
Looking to start an LPG (cooking gas) retail business in Kenya? You’re in the right place. With the demand for clean energy rising rapidly across urban and peri-urban areas, the gas business offers a profitable and scalable opportunity. This comprehensive 2025 guide by Sifa Media Digital Marketing walks you through everything you need—from licensing and capital to marketing and digital tools to grow your business.
Why Invest in the LPG Business in Kenya?
- LPG demand in Kenya is estimated between 60,000 to 200,000 metric tonnes annually.
- Government regulation in 2009 introduced universal cylinder valves, reducing entry barriers.
- Majority of urban households are shifting to LPG for cooking due to affordability, cleanliness, and convenience.
- The business has high-profit margins, averaging 30%–45% per cylinder.
Tip: New estates and fast-growing towns offer untapped potential for retailers.
Legal Requirements to Start a Gas Business
The business is regulated under the Energy Act and monitored by the Energy and Petroleum Regulatory Authority (EPRA).
To operate legally, you need:
- A valid business permit from the county.
- An ERC retail license.
- A fire safety compliance certificate.
- Calibrated digital weighing scale certificate.
📌 Download required forms and licenses from ERC Website
Initial Capital and Equipment Needed
Sample Budget Breakdown (Estimates for 2025):
| Item | Estimated Cost (KES) |
|---|---|
| Business Licenses & Permits | 30,000 |
| Equipment (Cages, Cylinders, Fire Extinguisher) | 296,000 |
| Premises & Branding | 70,000 |
| Marketing & Working Capital | 40,000 |
| Total Estimated Cost | ~460,000 |
Equipment Checklist:
- Assorted cylinders (6kg and 13kg)
- Display metallic cage
- Fire extinguisher
- Digital weighing scale
- Delivery motorbike (optional)
Licensing and Permits
You’ll need these key licenses:
- County Single Business Permit
- ERC Retail License
- Fire License
- Weights & Measures Certificate
👉 Need help acquiring these? Our team at Sifa Media Digital Marketing can assist with eCitizen applications and document processing.
Finding Reliable Gas Suppliers
There are two categories of suppliers:
- Legal Suppliers – Licensed wholesalers like oil companies and authorized depots.
- Illegal Suppliers – Unregulated wholesalers who refill without brand authorization.
⚠️ To protect your business and customers, source only from licensed suppliers listed by EPRA or oil brands like Total, K-Gas, Hashi, and ProGas.
Revenue, Profit Margins, and Breakeven
- Profit Margins: 10% to 45%
- Best-selling size: 6kg cylinders
- Breakeven period: 6 to 10 months
- Monthly sales potential: 100–400 cylinders depending on location
Revenue Boosting Tips:
- Offer delivery service via motorbike.
- Accept mobile payments (M-Pesa, Airtel Money).
- Ensure all cylinders are filled to the correct weight.
How to Market Your LPG Business
Offline Marketing Ideas:
- Branded signs and staff uniforms
- Door-to-door leaflet distribution
- Offer loyalty points and referral bonuses
Online Marketing Solutions (Powered by Sifa Media):
- Create a professional website to list your prices and delivery zones
- Run targeted Facebook and Google Ads
- Use email marketing to retain customers with monthly refill reminders
Digital Solutions for Your Gas Business
In today’s digital-first world, your gas business needs to go online. Here’s how we help at Sifa Media Digital Marketing:
✅ eCitizen Business Registrations
✅ Professional Website Design
✅ Graphic Branding (Posters, Flyers, Banners)
✅ Digital & Social Media Marketing
✅ Email Campaigns for Customer Retention
💬 Let us simplify the tech, so you focus on supplying gas. Talk to us here.
Final Thoughts
Starting a gas retail business in Kenya is a smart move—if done right. While competition is stiff, the demand is high and still growing. With proper licensing, a solid supplier, and modern digital tools from Sifa Media Digital Marketing, you can dominate your local market.
📢 Next Read: The Ultimate Guide to Starting a Cyber Café Business in Kenya
